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We called for this review and it is very good news for residents and their families.

Janet Morrison, CEO of Independent Age

“It’s very hard for them to know whether they are getting value for money and we regularly hear concerns about unfair contracts and unreasonable fee increases.”

About 15 per cent of over-85s live in care homes, with the number expected to rise substantially as the population ages.

Recent Citizens Advice research found rising numbers of elderly faced unexpected bills and paying deposits that were not protected by a scheme.

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One in five people with a relative in a home has been hit with a shock bill

One care home in 10 gives only a week’s notice to residents of a hike in fees while one in five people with a relative in a home has been hit with a shock bill and more than a third have put down a deposit without any security of its return.

Gillian Guy, of Citizens Advice, said: “A lack of protections in the care market is exposing older people and their families to poor practices. People often have little choice but to pay these costs because moving the resident to another care home is simply too disruptive or distressing.

“In some instances relatives don’t make a complaint to the company because they worry that the resident could be treated badly.

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One care home in 10 gives only a week’s notice to residents of a hike in fees

“Given that people paying care bills in many ways have fewer protections than those buying a package holiday or as an energy customer, it is good that the CMA will now investigate the care home market.”

Citizens Advice is calling for the CMA’s investigation to look at introducing a minimum notice period for a fee increase and for a formal requirement for advance information about any extra charges.

It also wants better protection for deposits and local authority support for those who have problems with their care home provider.